My IVA Has Failed And I’m At The End of My Rope and Considering Death. – Charlie

I had an IVA for 2 years -now failed due to I cannot afford the repayment in the first place anyway, my income was manipulated by my supervisor so that I can get through the IVA petition. Manage to keep it going for 2 years by borrowinf from pot a to pay pot b, so on and so forth. Now, I am at the end of the road, with more debts than I started. I just received the notice from my IVA supervisor that my IVA had failed and now I am at the mercy of my creditors. They may take my home.

Is there a way out for me and to save my home? I only own 50% of my property and it is in negative equity at this moment in time. Or this is actually the end of the road for me – death is the only answer?

Charlie”

Dear Charlie,

For those that are not aware what an IVA is, it is an Individual Voluntary Arrangement and is used in the UK to avoid bankruptcy by people that can afford to make a binding payment as voted on by at least 75% of your creditors.

An IVA is like a debt management plan except it is a formal and binding agreement put forward by a licensed insolvency practitioner, typically an accountant. The agreement is administered by an IVA Supervisor, typically the same insolvency practitioner that submitted the IVA for creditor voting.

As long as you are making your IVA payments as agreed, all of the credit card companies will cease charging you any interest at all, all collections activity will cease, and you can move forward with your life knowing that at the end of the IVA plan, typically five years, you will be out of debt.

But if you’ve been robbing from pot A to pay pot B then it sounds like the IVA was doomed to fail from the beginning. You could always reapply for a new IVA but with the current state of your financial affairs I doubt that a second bite at the IVA apple is going to be any more successful.

The good news is that your property is in negative equity so there is nothing to sell to generate money for creditors. Bankruptcy in the UK is a much simpler procedure than in the U.S. Even so, I would recommend that you consider getting some help with your bankruptcy forms to make sure you put your best foot forward to sail through your bankruptcy as easily as possible. For UK bankruptcy help, click here. Considering the situation with the home and it owned jointly with your partner, you just need to make extra careful that every is done right on your bankruptcy the first time.

I think with a little professional help this will be an easier process than you would have thought. And Charlie, death is not the answer here. If you follow my advice here you will find relief from this debt very quickly and with some great assistance. Don’t do anything foolish. I want you to stick around my friend.

Thank you for your answers and encouragement. I am sorry that I did not leave a comment when I first read the reply – I did not see the ‘comment’ bit on the e-mail until just now when I am going through my mails and having a sort out. Since your advise, I have contacted someone to help with the bankruptcy forms but have not committed to it yet as I am struggling to find the fee he is asking for the service. I still feel scared and unable to sleep, when I did get some sleep, I always have dreams or nightmare – all about ‘money’ in all shapes or forms. Very difficult times indeed but I am proding on.

You are right, I shouldn’t think about dead – it is not the way to go – thank you. I would like to let you know how I get on later, if you don’t mind.

http://GetOutOfDebt.org Steve Rhode

Please keep me updated on your progress. If you need to talk to someone in the UK about bankruptcy call Jon at 0800 1116 885.

More Available Help

Recent Comments

Read More Comments

The Amazing How to Get Out of Debt Calculator

In a matter of minutes this one single online calculator will demonstrate your different debt relief options available to get out of debt. As far as I know this is the first calculator like this. It's free to use. [Click Here]

Legal Friends and Protectors

A number of consumer attorneys stand behind the site as a friend and legal protector of the work we do here. [Click Here]

Find Me on Facebook

About Me

I'll help you get out of debt totally for free. All you have to do is tell me your situation, ask me your question and I'll help you find an honest and truthful solution to resolve your debt and credit situation.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.